Innovative Financing:
SmartWay Clean Diesel Finance Program

• Recovery Act Funding for Clean Diesel Activities
• 2008 SmartWay Clean Diesel Finance Program
  

$300 million of Recovery Act funding for clean diesel activities now available, including SmartWay Clean Diesel Finance Program funding

The Environmental Protection Agency (EPA) released its Request for Applications (RFA) for the National Diesel Emissions Reduction Program funding in the American Recovery and Reinvestment Act of 2009 (Recovery Act) passed by Congress earlier this year.  Information and the RFAs are available at Recovery Act Funding for clean diesel activities or the specific program links below.

The $300 million funding package includes the following four programs:

• The Recovery Act Funding for the SmartWay Clean Diesel Finance Program will receive approximately $30 million. This funding will support the creation of national, state or local innovative clean diesel financing programs.
• The Recovery Act Funding for the National Clean Diesel Funding Assistance Program will receive approximately $156 million. This funding will be awarded on a competitive basis to support diesel emission reduction programs.
• The Recovery Act Funding for the National Clean Diesel Emerging Technology Program will receive approximately $20 million. This funding will support the use, development and commercialization of emerging technologies that reduce emissions from diesel engines.
• The Recovery Act Funding for the State Clean Diesel Grant Program will receive approximately $88 million. This funding will be available to support clean diesel grant and loan programs administered by states and the District of Columbia.

For the Recovery Act Funding for the SmartWay Clean Diesel Finance Program, our goal is to establish national, state or local innovative financial programs that support the implementation of diesel emissions reduction technology.  Innovative financial projects can include those where the loan recipient receives a specific financial incentive (i.e., better than regular market rates or conditions) for the purchase or lease of retrofitted vehicles or equipment.

EPA hosted an information session on March 31, 2009, about the Request for Application for the Recovery Act Funding under the SmartWay Clean Diesel Finance Program.  For more information, please see the March 31, 2009 Finance webinar under the Recordings of Past Webinars section.

Under this grant program, funding is restricted to the use of EPA and California Air Resources Board (CARB) verified and certified diesel emission reduction technologies.  Details on eligible technologies are found in the Recovery Act Funding for the SmartWay Clean Diesel Finance Program RFA (PDF) (41 pp, 230K, March 2009, About PDF).  

2008 SmartWay Clean Diesel Finance Program

Based on EPA FY 2008 National Diesel Emissions Reduction Program appropriations, EPA awarded $3.4 million in grants to support three innovative financial assistance programs.  These financial assistance programs provide innovative loans to help small trucking firms lower their fuel costs and their carbon footprint by purchasing newer used trucks and idling and emissions reduction technologies.

The information provided below is based on each 2008 grant recipient's loan/lease program and is subject to change.  Interested applicants should contact each organization for specific application information.